The Teachers' Pensions Regulations 1997

• Citation: S.I. 1997/3001
• Sections: 266

A1 Citation and commencement

These Regulations may be cited as the Teachers' Pensions Regulations 1997 and shall come into force on 3rd February 1998 but the following provisions shall have effect from 1st September 1997—

regulation C2,

regulation C3(3),

regulation C18 insofar as it relates to contributions payable under regulation C3(3),

regulation E7,

regulation G2(2) insofar as it relates to contributions payable under regulation C3(3),

regulation G2(3) insofar as it relates to contributions payable under regulation G6,

regulation G6,

regulation G7(1)(c) and (2),

regulation H1,

regulation H12(1) insofar as it relates to regulations C1(6) to (11) and H1 of the 1988 Regulations ,

regulation H13, and

Schedule 16.

A2 Interpretation

(1) Schedule 1 to these Regulations contains a glossary of expressions: and in these Regulations, unless the context otherwise requires, any expression for which there is an entry in the first column of that Schedule has the meaning given against it in the second column or is to be construed in accordance with directions given against it in that column.

(2) In these Regulations, unless the context otherwise requires—

(a) any reference to the purchase of added years is, in relation to previous provisions, to be construed as including a reference to the payment of contributions by a person in respect of a period during which he was not in pensionable employment,

(b) any reference to contributions and benefits payable in respect of a person is to be construed as including a reference to contributions paid by him and benefits paid to him, and

(c) any reference to a transfer value paid or accepted is to be construed as including a reference to a transfer value which would have been paid or accepted but for arrangements made for the avoidance of payments between Ministers.

(3) Where these Regulations require anything to be done within a specified period after or from a specified day or event, the period begins immediately after the specified day or, as the case may be, the day on which the specified event occurs.

(4) For the purposes of these Regulations a person’s pensionable employment ends with the last day of the employment or, as the case may be, the last day on which the employment was pensionable.

B1 Employment—general

(1) Subject to paragraphs (2) to (5), regulation B3 (where applicable) and regulations B4 to B6 a person is in pensionable employment while he is in employment—

(a) in a capacity described in Schedule 2 and satisfies every condition and is not within any exception specified in that Schedule in relation to employment in that capacity, or

(b) as a teacher in an accepted school.

(2) Employment in a capacity described in Part II of Schedule 2 is not pensionable unless the person has elected that it is to be so.

(3) Except in the case of employment in a capacity described in paragraph 16, 21, 22 or 24 of Schedule 2, an election for the purposes of paragraph (2) may not be made without the consent of the employer.

(4) A person who is in part-time employment is not in pensionable employment unless he has at some time made an election for the purposes of this paragraph.

(5) A person who is in part-time employment is not in pensionable employment while he is a member of the occupational pension scheme constituted by the Local Government Pension Scheme Regulations 1995 (“the 1995 Regulations ”) or, when they are in force, the Local Government Pension Scheme Regulations 1997 , the Local Government Pension Scheme (Transitional Provisions) Regulations 1997 and the 1995 Regulations (so far as they continue to operate).

(6) An election for the purposes of this regulation—

(a) may be made at any time by giving written notice to the Secretary of State, and

(b) has effect from the first day of the month after that in which the notice was given, unless the Secretary of State specifies that it should have effect from an earlier date.

B2 Continuing employment

Subject to regulations B4 to B6, a person who immediately before 3rd February 1998 was in employment (“the first employment”) which was pensionable employment by virtue of regulation B3 of the 1988 Regulations (continuing employment) is in pensionable employment—

(a) while he is in the first employment, and

(b) while he is in employment which is in continuation of the first employment.

B3 Employment in accepted school

(1) A person employed in an accepted school is not in pensionable employment if he has any financial interest in the establishment other than a right to a salary.

(2) Subject to paragraph (6), an establishment is an accepted school if—

(a) immediately before 3rd February 1998 it was an accepted school for the purposes of regulation B4 of the 1988 Regulations, or

(b) the Secretary of State has accepted it for the purposes of this regulation.

(3) The establishments that may be accepted are—

(a) an independent school finally registered under section 465 of the 1996 Act ,

(b) an independent school provisionally registered under that section which had been a school of a kind mentioned in paragraph 1, 2, 3 or 4 of Schedule 2,

(c) an independent school provisionally registered under that section which was constituted by an amalgamation of schools of which at least one was an accepted school, and

(d) an establishment which provides further education constituted by an amalgamation of establishments which provided such education of which at least one was an accepted school.

(4) An establishment may only be accepted if its governing body have made a written application to the Secretary of State.

(5) No establishment need be accepted, but if an establishment is accepted its acceptance takes effect—

(a) where paragraph (3)(b) applies, as from the date of provisional registration, and

(b) in any other case, as from a date to be agreed between the Secretary of State and the governing body, which must be—

(i) the first day of a month later than that in which the application was made, or

(ii) if the establishment was constituted by an amalgamation, either the first day of such a month or the date of the amalgamation.

(6) An establishment which has become an accepted school ceases to be one from the date specified in a written notice given to its governing body by the Secretary of State.

(7) Notice for the purposes of paragraph (6) may be given—

(a) in the case of an independent school, if it ceases to be a registered or provisionally registered school within the meaning of section 465 of the 1996 Act, or

(b) in the case of an establishment of further education, if—

(i) it ceases to be one, or

(ii) it employs as a teacher a person whom it would have been precluded from employing if regulations for the time being in force under section 218(6) of the Education Reform Act 1988 had applied, or

(c) in any case, if the governing body—

(i) have made a written application to the Secretary of State for the establishment to cease to be an accepted school, or

(ii) have failed to pay or remit contributions (whether under these Regulations or under the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994) to the Secretary of State, or

(iii) have failed to comply with regulation H3 (records and information) or any other provision of these Regulations relating to pensionable employment.

(8) Paragraphs (4) to (7) apply to an establishment which had previously ceased to be an accepted school as they apply to an establishment which has not previously been an accepted school.

(9) In this regulation “governing body” includes any person by whom teachers are employed.

B4 Employment not pensionable

(1) A person is not in pensionable employment unless he is—

(a) 18 years old or older and under 70, and

(b) entitled to be paid his salary in full, or on sick leave and entitled to be paid not less than half his salary, or on maternity leave and entitled to be paid any contractual remuneration or statutory maternity pay.

(2) A person who is entitled to be paid a teacher’s pension including cases where the annual rate of pension has been reduced to zero in accordance with regulation E14 (abatement of retirement pension during further employment) is not in pensionable employment if he is in employment which—

(a) commenced on or after 1st April 1997, or

(b) is part-time employment.

(3) A person is not in pensionable employment while he is in an employment which immediately before 3rd February 1998 by virtue of regulation B5(2) of the 1988 regulations (exclusion from pensionable employment) was not pensionable employment.

(4) This paragraph applies to a person who—

(a) immediately before 3rd February 1998 was in, or

(b) not more than 12 months before that date had ceased to hold,

an employment which by virtue of regulation B5(4) of the 1988 Regulations was not pensionable employment.

(5) Subject to paragraph (6), a person to whom paragraph (4) applies is not in pensionable employment while he is in an employment which would not have been pensionable employment if—

(a) regulation B5(4) of the 1988 Regulations had continued in force, and

(b) he had made no election under regulation B5(5) of those Regulations.

(6) Within 3 months after the start of an employment to which paragraph (4) applies the person may, by giving written notice to the Secretary of State and to the appropriate administering authority within the meaning of the Local Government Pension Scheme Regulations 1995 or, when they are in force, the Local Government Pension Scheme Regulations 1997, elect that paragraph (5) is to cease to apply.

B5 Election for employment not to be pensionable

(1) A person who—

(a) is in pensionable employment, or

(b) is not in pensionable employment but expects to enter an employment which would otherwise be pensionable employment,

may, at any time, by giving written notice to the Secretary of State, make an election under this regulation.

(2) As from the date from which the election has effect—

(a) where paragraph (1)(a) applies, the person ceases to be in pensionable employment for all purposes of these Regulations, and

(b) in any case, subject to regulation B6, no subsequent employment of his is pensionable employment.

(3) Where paragraph (1)(a) applies, an election under this regulation—

(a) if the notice is given within 3 months after the start of the person’s pensionable employment, has effect as from the first day of his pensionable employment, and

(b) in any other case, has effect from the first day of the month after that in which the notice was given.

(4) Where paragraph (1)(b) applies, the election has effect as from the day before that on which the person first enters any such employment as is there mentioned.

B6 Resumption of pensionable status

(1) A person who has made an election under regulation B5, who has since been in employment which would otherwise have been pensionable employment and who—

(a) is in such employment, or

(b) is not in, but expects to enter, such employment,

may at any time, by giving written notice to the Secretary of State, make an election under this regulation.

(2) As from the date on which the election has effect, subject to regulations B1(2) and (4) and B5, any employment on and after that date is pensionable employment if it is such employment by virtue of regulations B1 to B4.

(3) Where paragraph (1)(a) applies, an election under this regulation—

(a) if the notice was given within 3 months after the start of any period of employment which would otherwise have been pensionable, has effect as from the first day of that employment, and

(b) in any other case, has effect from the first day of the month after that in which the notice was given.

(4) Where paragraph (1)(b) applies, the election has effect as from the day before that on which the person first enters any employment which would otherwise be pensionable.

C1 Salary on which contributions are payable

(1) Subject to paragraphs (3) to (5) and (8) to (11) and regulation C2, the contributable salary of a person to whom the 1991 Act applies is the total of—

(a) the amounts payable by his employer under any order under section 2 of the 1991 Act for the time being in force or under any document referred to in such an order,

(b) the amounts payable by his employer in respect of his pensionable employment in satisfaction of any contractual liability arising out of sickness or maternity,

(c) the amounts payable by his employer in respect of his pensionable employment in satisfaction of any statutory liability arising out of sickness or maternity, and

(d) if the employer has satisfied the Secretary of State that it is expedient for residential accommodation to be provided free in connection with the employment, the money value as an allowance in kind of—

(i) the accommodation provided, and

(ii) any heat, lighting or water provided free or council tax paid in connection with it.

(2) Subject to paragraphs (3) to (11) and regulation C2, the contributable salary of a person to whom paragraph (1) does not apply is the total of—

(a) all the salary, wages, fees and other payments paid to him for his own use in respect of his pensionable employment,

(b) the amounts mentioned in paragraph 1(c), and

(c) the money value mentioned in paragraph 1(d).

(3) If the money value of any accommodation as mentioned in paragraph (1)(d)(i) provided free exceeds one sixth of the aggregate of the amounts mentioned in paragraph (1)(a) to (c), or, as the case may be, paragraph (2)(a) and (b), the excess is not part of the person’s contributable salary.

(4) A person’s contributable salary does not include—

(a) any allowance in kind not falling within paragraph (1)(d) or (2)(c),

(b) any payment by way of bonus,

(c) any payment in respect of overtime, or

(d) any payment by way of travelling or expense allowance.

(5) For the purposes of paragraph (4) above—

(a) a payment by way of bonus shall not include any payment calculated by reference to the performance of the person in question or the performance of the institution where he is employed,

(b) a payment by way of bonus shall not include any payment made to the person in question where such a payment is made as part of a pay settlement which applies to all persons, or to all persons of a particular class or description, employed at the institution,

(c) if at any time a payment is made to a person which is not part of his contributable salary, then any subsequent payment of the same nature is a payment by way of bonus (whether or not it is described as such), and

(d) if at any time a payment is made to a person which is part of his contributable salary, then any subsequent payment of the same nature is not a payment by way of bonus (whether or not it is described as such).

(6) The contributable salary of a person employed as mentioned in paragraph 14 of Schedule 2 (teacher in European Schools) does not include any amount not payable by, or money value not attributable to, the Secretary of State.

(7) The contributable salary of a person employed as mentioned in paragraph 22 of Schedule 2 (services education officer) is the amount that would for the time being be payable by way of salary under an order under section 2 of the 1991 Act for the time being in force or under any document referred to in such an order, to a teacher of the same age and with the same qualifications and experience employed in a school outside the London area (within the meaning of any such document).

(8) Subject to paragraphs (9) and (10), in the case of a person entering pensionable employment after 31 May 1989 with no right to count any period before 1 June 1989 as reckonable service, in any tax year in which the contributable salary calculated in accordance with paragraphs (1) to (7) and regulation C2 exceeds the permitted maximum in terms of section 590C of the Taxes Act , the excess does not form part of his contributable salary.

(9) Paragraph (8) shall not apply to a person who was in pensionable employment before 1 June 1989 and who resumes pensionable employment following—

(a) an absence on maternity leave in respect of which she enjoyed a right to return to work under sections 79 to 85 of the Employment Rights Act 1996 ,

(b) a period of secondment or additional period of absence necessarily attributable to that secondment, and

(c) in any other case, a break in teaching employment not exceeding one year.

(10) Paragraph (8) shall not apply to a person who was in comparable British service before 1st June 1989 and who enters pensionable employment provided there has not been a period of more than one year between cessation of employment in comparable British service and entering pensionable employment.

(11) For the purpose of paragraph (10) “comparable British service” does not include service which is pensionable under a superannuation scheme for teachers in public employment in the Channel Islands and the Isle of Man.

C2 Salary on which contributions are payable—election

(1) A person who—

(a) continues in pensionable employment but whose contributable salary is reduced, otherwise than by reason of sick leave or maternity leave, and who satisfies the conditions in paragraph (2), or

(b) leaves pensionable employment with one employer (“employer A”) and—

(i) takes up employment again with employer A, or

(ii) takes up employment with another employer (“employer B”)

at a lower contributable salary and who satisfies the conditions in paragraph (3),

may make an election that his salary is to be treated as having continued at the rate specified in paragraph (4).

(2) The conditions referred to in paragraph (1)(a) are—

(a) that on the date when the contributable salary was reduced the person had attained the age of 50,

(b) that on the date when the contributable salary was reduced he had been in pensionable employment or excluded employment for at least five years, and

(c) that the responsibility of his post after the reduction in contributable salary is lower than the responsibility of any of the posts which he had held during the period of five years immediately preceding the date of the reduction in contributable salary.

(3) The conditions referred to in paragraph (1)(b) are—

(a) that on the date of leaving pensionable employment with employer A the person had attained the age of 50,

(b) that at the date of leaving pensionable employment with employer A he had been in pensionable employment or excluded employment for at least 5 years,

(c) that the responsibility of his new post with employer A or, as the case may be, his post with employer B is lower than the responsibility of any of the posts which he has held during the period of 5 years immediately preceding the date on which he left employment with employer A as described in paragraph (1),

(d) that employer A notifies the Secretary of State that he has provided satisfactory service during the period of 5 years referred to in sub-paragraph (c) or, where he has been employed by employer A for less than 5 years, during the period when he was employed by employer A, and

(e) that no more than one year had elapsed between leaving pensionable employment with employer A as described in paragraph (1) and taking up pensionable employment again with employer A or, as the case may be, taking up pensionable employment with employer B.

(4) The rate of salary referred to in paragraph (1) is—

(a) where the person falls within paragraph (1)(a) and is employed full-time after the reduction, the rate applicable immediately before the reduction, and

(b) where the person falls within paragraph (1)(b) and is re-employed full-time with employer A, or employed full-time with employer B, the rate applicable immediately before he left employment with employer A as described in paragraph (1),

(c) where the person falls within paragraph (1)(a) and is employed part-time after the reduction, the rate which would have been applicable immediately before the reduction if he had been employed for the same number of hours or, for the same proportion of the year, term, month or week, as the case may be, as he is employed immediately after the reduction, and

(d) where the person falls within paragraph (1)(b) and is employed part-time at the start of his re-employment with employer A or his employment with employer B, the rate which would have been applicable immediately he left his employment with employer A as described in paragraph (1) if he had been employed for the same number of hours or for the same proportion of the year, term, month or week, as the case may be, as he is employed at the start of his re-employment with employer A, or, as the case may be, his employment with employer B,

increased, in each case, on each increase day by

where—

RI is the retail prices index for the month in which the increase day occurs, and

RE is the retail prices index for the month in which the election was made.

(5) For the purposes of paragraph (4) the increase day is the first day of the month in each year following the month in which—

(a) the salary was reduced, in a case where the person falls within paragraph (1)(a), or

(b) the person left his employment with employer A as described in paragraph (1) in a case where the person falls within paragraph (1)(b),

and the first increase day is that falling in the year after the year in which the salary was reduced or the person left his employment with employer A, as the case may be.

(6) An election for the purposes of paragraph (1)—

(a) must be made by giving written notice to the Secretary of State before the date which is 3 months after—

(i) the reduction in salary, in a case where the person falls within paragraph (1)(a), or

(ii) taking up employment again with employer A or, as the case may be, taking up employment with employer B, in a case where the person falls within paragraph (1)(b),

or before 3rd May 1998 whichever date is later.

(b) has effect from—

(i) the day after the last day on which the person’s salary was payable at the rate applicable immediately before the reduction, in a case where the person falls within paragraph (1)(a), or

(ii) the day on which the person takes up employment again with employer A or, as the case may be, takes up employment with employer B, in a case where the person falls within paragraph (1)(b); and

(c) subject to paragraph (7), continues to have effect until the person ceases to be in pensionable employment unless he—

(i) elects to pay additional contributions under regulations C9 or C10, or

(ii) takes up pensionable employment with another employer (“employer C”) within six months of ceasing to be in pensionable employment.

(7) An election for the purposes of paragraph (1) may be cancelled by giving written notice to the Secretary of State at any time.

(8) Notice of cancellation—

(a) has effect from the first day of the month following that in which it was received, and

(b) is irrevocable.

(9) If, while an election made for the purposes of paragraph (1) has effect, there is any further reduction in salary during a period of sick leave or maternity leave, the rate of salary specified in paragraph (4) is, during that period, to be treated as having been reduced in the same proportion as the actual rate.

(10) In paragraph (1)(a) and (b) the reference to contributable salary is, in the case of a person in part-time employment, a reference to the salary which would have been the person’s contributable salary if the person had been in full-time employment.

(11) In this regulation “the retail prices index” means the index of retail prices published by the Office for National Statistics.

C3 Ordinary contributions

(1) Subject to paragraph (3), a person, other than a services education officer, who is in pensionable employment is to pay contributions of 6% of his contributable salary for the time being.

(2) Subject to paragraph (3), a services education officer is to pay contributions equivalent to the total of—

(a) 6% of his contributable salary for the time being, and

(b) the employer’s contributions that would have been payable if regulation G5 had applied.

(3) A person who has made an election under regulation C2(1) shall, in addition to the contributions referred to in paragraph (1), pay contributions of the required percentage of the difference between the person’s actual contributable salary and the contributable salary at the rate referred to in regulation C2(4) to the extent that such contributions are not paid by any employer referred to in regulation G6 under an election mentioned in that regulation.

(4) No contributions are to be paid by any person to whom regulation E32(2)(a) (restriction of reckonable service to 45 years) has become applicable.

C4 Additional contributions for past period

(1) This regulation applies to a person who—

(a) is in pensionable employment, and

(b) first became employed in pensionable employment, or has been credited with reckonable service on the acceptance of a transfer value in respect of comparable British service that began, before he attained the age of 55, and

(c) has not become entitled to payment of retirement benefits under regulation E4(2) or (3).

(2) Subject to paragraphs (4) to (7) and (9), a person to whom this regulation applies may elect to pay additional contributions in accordance with—

(a) Part I of Schedule 4 (“Method A”), or

(b) Part II of Schedule 4 (“Method B”),

in order to become entitled to count an additional period (“the past period”) as reckonable service.

(3) Subject to paragraphs (4) to (6), (8) and (9), the employer of a person to whom this regulation applies may elect to pay additional contributions in respect of the person in accordance with Part II of Schedule 4.

(4) The past period must not exceed the maximum calculated in accordance with Schedule 3, and—

(a) must have begun after the person attained the age of 20,

(b) must have ended—

(i) before the person attained the age of 60,

(ii) before the date of the election, and

(iii) if the person has become entitled to payment of retirement benefits by virtue of regulation E4(5) (redundancy, etc ), before the relevant termination of employment.

(c) must be one during which the person was not in full-time pensionable employment, unless—

(i) contributions in respect of the period have been repaid after 31 May 1973, or

(ii) the right to count reckonable service in respect of it has been extinguished by payment of a transfer value.

(d) if payment is to be made by Method A, must satisfy paragraph 2 of Schedule 4, and

(e) unless payment is to be made by Method B and notice of the election is given no earlier than the date of applying for payment of retirement benefits, must be a period of not less than 30 days.

(5) Where payment is to be made by Method A, the period during which additional contributions are to be paid (“the contribution period”) must satisfy paragraph 2 of Schedule 4.

(6) An election under this regulation may be made at any time.

(7) An election under paragraph (2) must be made by giving written notice to the Secretary of State, which—

(a) is to specify the past period,

(b) is to specify the method by which payment is to be made,

(c) where payment is to be made by Method A, is to specify the length of the contribution period, and

(d) where payment is to be made by Method A, is to contain a declaration that the person has no reason to believe that his health may prevent him from continuing in pensionable employment until payment has been completed.

(8) An election under paragraph (3) must be made by giving written notice to the Secretary of State which—

(a) is to specify the person in respect of whom it is made, and

(b) is to specify the past period.

(9) An election under this regulation has effect only if the Secretary of State notifies the person making it in writing that it has been accepted.

(10) Where the Secretary of State has notified the person in writing that his election under this regulation has been accepted, the person may at any time revoke the election by giving written notice to the Secretary of State but, in the case of such election being so revoked, any additional contributions paid up to that time are not to be refunded.

(11) A revocation of an election under this regulation has effect only if the Secretary of State notifies the person in writing that it has been accepted.

C5 Additional contributions for past period by family pensioner

(1) This regulation applies where a person dies in circumstances where—

(a) had he ceased to be in pensionable employment on the day when he died, would have become entitled under regulation E4 to the payment of retirement benefits, and

(b) another person (“the pensioner”) is entitled under regulation E26 to a long-term pension in respect of him.

(2) Where this regulation applies, the pensioner, or in the case of a child a person acting on his behalf, may by giving written notice to the Secretary of State within 3 months after the death, make any election which, on the hypothesis stated in paragraph (1)(a), the deceased person could have made under regulation C4.

(3) Subject to paragraph (4), an election under this regulation has effect as if it had been made under regulation C4 by the deceased person.

(4) The additional contributions are payable by the pensioner except to the extent that they are, with the consent of any person entitled to it, met out of a terminal sum.

C6 Additional contributions for past period under earlier provisions

Schedule 5 has effect where immediately before 3rd February 1998 additional contributions remained to be paid by virtue of regulations 26, 28 or 29 of the 1976 Regulations or Part III of Schedule 4 to the 1988 Regulations.

C7 Reduction of past period

(1) This regulation applies where—

(a) an election has been made under regulation C4 or C5, and

(b) the person by or in respect of whom it was made subsequently becomes entitled to count a further period as reckonable service, by virtue of regulation D5 of the 1988 Regulations (which continues to have effect for certain purposes by virtue of paragraph 12 of Schedule 15) or regulation F4(8), and

(c) apart from this regulation some of his reckonable service (“the excess period”) consequently would, or would if he continued in pensionable employment until his 60th birthday, be left out of account, by reason of regulation E32(2), for the purpose of calculating benefits.

(2) Where this regulation applies, the period in respect of which the election mentioned in paragraph (1)(a) was made is to be treated as reduced by the excess period.

(3) Where the additional contributions already paid exceed those required for the reduced period, the excess is to be refunded.

C8 Additional contributions in respect of war service

(1) This regulation applies to a person who became entitled by virtue of regulations 7 and 72(1)(a) of the 1976 Regulations to count as reckonable service a period related to war service (“the war service period”).

(2) Subject to paragraph (6), there is to be paid by or in respect of a person to whom this regulation applies, by way of deduction from the appropriate terminal sum, an additional contribution of

where—

A is 3.75% of the salary notionally received during the person’s war service, and

B is interest on A at 3.5% per annum, compounded with yearly rests, from 1st July 1950 to the relevant date.

(3) The salary notionally received during the person’s war service is £200 per annum in the case of a man and £175 per annum in the case of a woman.

(4) The relevant date is—

(a) 1st September 1974 if the person was then receiving a teacher’s pension,

(b) if a transfer value has become payable in respect of him after 31st August 1974, the date on which he became subject to the receiving scheme, and

(c) in any other case, the date on which the terminal sum is paid.

(5) If the additional contribution exceeds the terminal sum the excess is to be paid in such manner as may be agreed.

(6) If—

(a) the counting of the war service period does not increase the retirement benefits payable, and

(b) no election is made under paragraph (8),

no additional contribution is payable under paragraph (2).

(7) This paragraph applies where the whole of the person’s other reckonable service would, in the event of his death, count in the calculation under regulation E28 of a spouse’s or nominated beneficiary’s pension (“the family pension”).

(8) Where paragraph (7) applies, the person may elect that there is to be paid, by way of a further deduction from the appropriate terminal sum, an additional contribution in respect of his war service.

(9) The amount of the additional contribution is the actuarial cost of the increase in the family pension that would result from the war service period counting under regulation E28(4)(c).

(10) An election under paragraph (8) must be made by giving written notice to the Secretary of State before the appropriate terminal sum is paid.

(11) If a person who could have made an election under paragraph (8) dies without having made it, the election may be made by the nominated beneficiary or surviving spouse before the appropriate terminal sum has been paid.

C9 Additional contributions for current period

(1) Subject to paragraphs (11) to (14), this regulation applies to a person who—

(a) before attaining the age of 60 has ceased to be in pensionable employment, otherwise than by virtue of an election under regulation B5, and

(b) was not then incapacitated, and

(c) did not then become entitled to payment of retirement benefits, and

(d) has not become a member of another occupational pension scheme or is not engaged in full-time employment in a capacity described in Part II of Schedule 2.

(2) Subject to paragraphs (3), (4) and (10), a person to whom this regulation applies may elect to pay additional contributions in order to become entitled to count as reckonable service a period (“the period”) beginning on the day after the cessation of the pensionable employment or, where paragraph (4)(a) applies, on the day after the last day of the earlier period.

(3) The period—

(a) must end before the person’s 60th birthday, and

(b) must not in any case exceed the maximum calculated in accordance with Schedule 3, and

(c) if the person has become employed as a teacher or supervisor in a school or educational service outside the British Islands, must not exceed 6 years, and

(d) in any other case, must not exceed 3 years.

(4) If the person has paid additional contributions under this regulation for an earlier period and—

(a) he has not since the end of that period been in pensionable employment, or

(b) he has since been in pensionable employment but for less than 12 months,

the earlier period is to be deducted from the maximum allowed by paragraph (3)(b).

(5) If before the end of the period the person—

(a) becomes entitled to payment of retirement benefits,

(b) becomes a member of another occupational pension scheme, or

(c) dies,

the period is to be treated as having ended on the day on which the relevant event occurred; and if before the end of the period he fails to pay an additional contribution, or a late payment is not accepted under paragraph (9), it is to be treated as having ended on the day up to which additional contributions have been paid.

(6) An additional contribution is payable for each financial year and is a percentage of the notional salary for so much of the period as falls within that year.

(7) For the purposes of paragraph (6)—

(a) the notional salary is an amount notified by the former employer or, where no such notification is given, estimated by the Secretary of State as being what the person’s contributable salary would have been if pensionable employment had not ceased and the person had continued to be employed in the same post and on the same terms taking into account, where appropriate, any election under regulation C2(1); and

(b) the percentage is (A+B−C) where A, B and C have the same meanings as in regulation G5(2).

(8) The contribution for a financial year is to be paid direct to the Secretary of State—

(a) where the period has not ended during the financial year, within 3 weeks after the end of the financial year, and

(b) in any other case, within 6 weeks after the end of the period or the date of a written notification by the Secretary of State that payment is due, whichever is the later.

(9) A late payment of a contribution may for special reasons be accepted by the Secretary of State; but if it is accepted the person is to pay interest on the amount of the contribution at 4% per annum compounded with yearly rests, from the due date of payment to the date of payment.

(10) An election under this regulation must be made by giving written notice to the Secretary of State, which must specify the period and must be given—

(a) if paragraph (3)(c) applies, within 6 months, and

(b) in any other case, within 3 months,

after the cessation of the person’s pensionable employment or, if later, the end of a previous period for which he has paid additional contributions under this regulation.

(11) For the purposes only of this regulation a person remains in pensionable employment while he is absent from duty during and in consequence of a trade dispute.

(12) Paragraph (11) applies—

(a) even if the person was not participating in or financing or otherwise directly interested in the trade dispute, and

(b) even if his employer was not a party to the trade dispute.

(13) This regulation does not apply to a person whose pensionable employment is employment as a relief teacher, that is to say a teacher who is employed in place of a person regularly employed and whose contract of employment is a short-term one.

(14) In this regulation “trade dispute” has the meaning given in section 244 of the Trade Union and Labour Relations (Consolidation) Act 1992 .

C10 Additional contributions for current period: service in a reserve force

(1) This regulation applies to a person who ceases to be in pensionable employment by virtue of being called out or recalled for permanent service in Her Majesty’s armed forces in pursuance of a call-out notice or call-out order or a recall order made under the provisions of the Reserve Forces Act 1996 , provided that—

(a) the person does not apply for payment of any retirement benefits to which he would otherwise be entitled on ceasing to be in such employment, and

(b) he does not accrue any reckonable service in the Armed Forces Pension Scheme or become a member of any other occupational pension scheme during his period of permanent service.

(2) Subject to paragraphs (10) and (11), a person to whom this regulation applies may elect to pay additional contributions in order to become entitled to count as reckonable service a period (“the period”) beginning on the day after the cessation of the pensionable employment and ending with the date on which he is released from permanent service or discharged.

(3) An additional contribution is payable for each financial year and is—

(a) 6% of the notional salary for so much of the period as falls within that financial year; and

(b) where an election has been made under regulation C2(1), an amount equivalent to any contributions which would have been paid under regulation C3(3) for so much of the period as falls within that financial year taking the reference in that regulation to the person’s actual contributable salary as a reference to the notional salary disregarding the election under regulation C2(1).

(4) The notional salary is the salary that would have been payable if pensionable employment had not ceased and the person had continued to be employed in the same post and on the same terms taking into account, where appropriate, any election under regulation C2(1).

(5) Subject to paragraphs (7) and (8), an election under this regulation must be made by giving written notice to the Secretary of State and must be given at any time between the cessation of pensionable employment and 6 months after the return to pensionable employment after the end of the period.

(6) An election has effect only if any contribution under this regulation is paid by the person to the Secretary of State within three months of the date of a written notification by the Secretary of State that payment is due to him; and provided that the person pays all contributions and payments payable by him in respect of the period in accordance with an election or elections made by him under regulation C4 (taken with Schedule 4), regulation C11 (taken with Schedule 6) and regulation C16.

(7) Where an election is made before the end of the period it must specify the day on which the period begins; and where an election is made after the end of the period it must specify the period.

(8) Subject to paragraph (9), where the person dies during his service in a reserve force without having made an election under this regulation, he shall be deemed to have made such an election so that the period beginning on the day after the cessation of the pensionable employment and ending with the date of his death shall count as reckonable service.

(9) Any contributions due under this regulation at the date of such death shall be deducted from any benefits payable under these Regulations.

(10) Notwithstanding that a person to whom this regulation applies has not made an election under this regulation, he shall be entitled to count the period as reckonable service where during the period his service pay, when aggregated with any payments under Part V of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 , is less than the remuneration he would have received if he had during the period continued in the pensionable employment in which he was employed immediately before being called into service in a reserve force.

(11) For the purposes of paragraph (10), “service pay” means pay for performing service in a reserve force, and includes marriage, family and other similar allowances.

C11 Additional contributions for family benefits

(1) Parts I and III of Schedule 6 have effect for enabling men and unmarried women to pay additional contributions (“family benefit contributions”) in order to secure, or to increase, family benefits in respect of reckonable service before April 1972.

(2) Parts II and III of Schedule 6 have effect for enabling married women to pay family benefit contributions in respect of reckonable service before 6th April 1988.

C12 Entitlement to repayment of balance of contributions

(1) Subject to paragraphs (3) and (4), this regulation applies where a person has ceased to be in pensionable employment and—

(a) he is not qualified for retirement benefits, and

(b) no transfer value has since been paid or become payable in respect of him, and

(c) he has not since taken any right to a cash equivalent, and

(d) he did not re-enter pensionable employment within one month after ceasing to be in pensionable employment, and

(e) he has not elected to pay additional contributions under regulation C9 or C10 for any period which includes the period beginning when he ceased to be in pensionable employment and ending one month later.

(2) This regulation does not apply if—

(a) the person ceased to be in pensionable employment before 6th April 1980, and

(b) the salary on which contributions were payable by him under the 1976 Regulations or under previous provisions in any year had exceeded £5,000.

(3) For the purposes of paragraph (1) a woman who ceased to be in pensionable employment wholly or partly because of pregnancy or confinement is to be treated—

(a) as having remained in such employment while she enjoyed the right to return to work conferred by sections 79 to 85 of the Employment Rights Act 1996 , and

(b) if she has exercised that right, as not having ceased to be in pensionable employment.

(4) Subject to regulation C15 (application for repayment), where this regulation applies the person is entitled to be repaid the balance of his contributions, calculated in accordance with regulation C13.

(5) The entitlement takes effect one month after the person ceased to be in pensionable employment or on his 70th birthday if earlier.

C13 Calculation of contributions to be repaid

(1) The balance of contributions referred to in regulation C12(4) is to be calculated as at the date of the calculation, or the person’s 70th birthday if earlier (“the calculation date”).

(2) The balance is

where—

A is the total of the amounts specified is paragraph (3),

B is the total of the deductions specified in paragraph (4), and

C is the amount of the tax chargeable on (A−B) under section 598 of the Taxes Act.

(3) The amounts are those of—

(a) all contributions paid, up to the date of receipt of the application for repayment, under regulations C3, C4, C9, C10 and C11, except—

(i) any treated for the purposes of regulation G2 as employer’s contributions, and

(ii) any paid in respect of a period of employment for which a short-service incapacity grant under regulation E17 has been received,

(b) contributions paid in respect of any comparable British service in respect of which the person is entitled to count reckonable service by virtue of the acceptance of a transfer value,

(c) if the person was entitled to count any reckonable service by virtue of the acceptance of a transfer value in respect of an employment that was not comparable British service, either—

(i) any payment by way of repayment of contributions, and interest, that he would otherwise have been entitled to receive under the rules of the pension scheme to which he was subject in the employment, or

(ii) if that scheme made no provision for the repayment of contributions, the contributions he paid under it in respect of the employment, and

(d) interest to the calculation date, at 3% per annum, compounded with yearly rests—

(i) on the contributions mentioned in sub-paragraphs (a) and (b), from the first day of the financial year following that in which they were paid, and

(ii) where sub-paragraph (c) applies, from the first day of the financial year following that in which the transfer value was paid.

(4) The deductions are—

(a) the amount of any previous repayment of contributions,

(b) if the Secretary of State has made a payment in lieu of contributions, or the person is entitled to equivalent pension benefits, half the amount of the payment in lieu of contributions that was or, as the case may be, would otherwise have been made, and

(c) if the Secretary of State has paid a contributions equivalent premium, the amount recoverable by him under sections 61 to 63 of the 1993 Act .

C14 Repayment of certain contributions paid for family benefits

(1) This paragraph applies where a member who has made no election under paragraph 3 of Schedule 6—

(a) becomes entitled under regulation C12 to the repayment of the balance of his contributions, or

(b) becomes entitled to payment of retirement benefits unless on his death family benefits would become payable.

(2) Subject to regulation C15, where paragraph (1) applies, the member is entitled to be repaid an amount calculated in accordance with paragraphs (3) to (5).

(3) Where no family benefit would have been payable if the member had died before 1st April 1972, the amount includes the whole of his normal contributions and any additional contributions.

(4) Where paragraph (3) does not apply, the amount includes—

(a) half the normal contributions paid in respect of any period during which family benefits would have been payable in the event of the member’s death,

(b) the whole of the normal contributions paid in respect of any other period, and

(c) the whole of any additional contributions.

(5) The remainder of the amount consists of interest at 3% per annum, compounded with yearly rests, from the first day of the financial year following that in which the contributions were paid to—

(a) the date of the calculation, or

(b) the member’s 70th birthday, or

(c) the date of his death,

whichever is the earliest.

(6) There is to be deducted from the amount the tax chargeable on it under section 598 of the Taxes Act.

(7) Subject to regulation C15, where a member who has made no election under paragraph 3 of Schedule 6 dies and he was entitled under regulation C12 to be repaid the balance of his contributions or—

(a) a death grant is payable under regulation E20, and

(b) no family benefit other than a children’s pension is payable,

his personal representatives are entitled to be paid an amount calculated in accordance with paragraphs (3) to (5) but with the interest component calculated to the date of his death.

C15 Application for repayment

(1) An amount to which a person is entitled under regulation C12 or C14 is to be paid to him only if the Secretary of State receives a written application for payment and paragraph (2), if applicable, is complied with.

(2) If the Secretary of State notifies him in writing that he so requires, the applicant is to provide any relevant information specified by the Secretary of State that is in his possession or that he can reasonably be expected to obtain.

C16 Return of repaid contributions

(1) A person to whom contributions were repaid before June 1973—

(a) who is in pensionable employment, or

(b) who is in comparable British service and in respect of whom no transfer value has been paid since the end of his last pensionable employment,

may at any time, by giving written notice to the Secretary of State, elect to return the contributions, with interest, to him.

(2) The return of contributions—

(a) may in any case, and

(b) if the amount of the contributions, together with the interest payable, does not exceed £500, must,

be made by a single payment, which must be made within ten weeks of the giving of notice under paragraph (1).

(3) Except where paragraph (2)(b) applies, the person may elect to make the return of contributions—

(a) if he is in full-time pensionable employment, by instalments under paragraph (5), or

(b) if he is in part-time pensionable employment or in comparable British service, by instalments under paragraph (7).

(4) Interest is payable at the rate of 3.5% per annum from the date on which the contributions were repaid to the date on which their return is completed, and—

(a) where the return is made by a single payment, is payable on the full amount of the contributions and is compounded with yearly rests, and

(b) where the return is made by instalments, is payable on the balance for the time being outstanding and is compounded with yearly rests on 31st March.

(5) Instalments payable under this paragraph are of equal amounts and are, subject to paragraph (6), payable by deduction from the person’s salary for a number of whole years, not exceeding 5 and ending before his 61st birthday, to be specified in the notice of the election.

(6) Where the total of—

(a) the instalments payable by a person under paragraph (5) in any year, and

(b) the other amounts to be deducted in that year under regulation C18,

would otherwise exceed 15% of his contributable salary for that year, the instalments are payable for the smallest number of whole years that will secure that the total does not exceed 15% of his annual contributable salary.

(7) Instalments payable under this paragraph are, subject to paragraph (8), payable—

(a) at equal intervals, of not more than six months, and

(b) for a period,

determined by the Secretary of State after consulting the person making the election.

(8) Instalments are of equal amounts unless in any year the payment of an instalment of an amount equal to that paid in previous years would exceed the limit specified in paragraph (9) and in that event the instalments (and the corresponding period over which they are payable) shall be recalculated so that they do not exceed that limit.

(9) The annual amount of instalments paid under paragraph (7) is to be such that A+B does not exceed 15% of the annual rate of the person’s contributable salary in the year where—

A is the annual amount of the instalments; and

B is the annual amount of other contributions paid under Part C (except any treated for the purposes of regulation G2 as employers' contributions) or towards the provision of a pension otherwise than under these Regulations.

(10) For the purposes of this regulation, a person is to be treated as being in pensionable employment if he is paying additional contributions under regulation C9 or C10 and such a person may, except where paragraph (2)(b) applies, elect to make the return by instalments under paragraph (7).

C17 Uncompleted return by instalments of repaid contributions

(1) This regulation applies where instalments are payable by a person under regulation C16(5) or (7).

(2) If before all the instalments have been paid—

(a) the person becomes entitled to payment of retirement benefits, or

(b) a death grant becomes payable in respect of him,

the balance outstanding, discounted for early payment, is to be deducted from the appropriate terminal sum and the return of the contributions is to be treated as having been completed.

(3) This paragraph applies where the instalments are payable under regulation C16(5) and before they have all been paid, the person—

(a) ceases to be in full-time pensionable employment, and

(b) does not become entitled to payment of retirement benefits, and

(c) continues in part-time pensionable employment or in comparable British service.

(4) Where paragraph (3) applies—

(a) the person may by giving written notice to the Secretary of State elect to pay the balance outstanding by instalments under regulation C16(7), and

(b) if he does not so elect, he is to make a single payment of the balance outstanding, discounted for early payment.

(5) This paragraph applies where before all the instalments have been paid—

(a) the person ceases to be in pensionable employment or in comparable British service, and

(b) neither paragraph (2) nor paragraph (3) applies.

(6) Where paragraph (5) applies—

(a) the person may, if he elects to pay additional contributions for a current period under regulation C9 or C10, by giving written notice to the Secretary of State elect to pay the balance outstanding by instalments under regulation C16(7) (but payable at the same times as the additional contributions), and

(b) if he does not so elect, he is to make a single payment of the balance outstanding, discounted for early payment.

(7) Where paragraph (3) or (5) applies and the person has not, within 3 months after the end of the relevant employment—

(a) made a payment under paragraph (4)(b) or (6)(b), or

(b) made any election he could have made under paragraph (4)(a) or (6)(a),

the amount of the instalments already paid is to be repaid to him.

(8) Where—

(a) a person who has elected as mentioned in regulation C16(3)(b) is in part-time pensionable employment or in comparable British service and an instalment has not been paid by the due date, or

(b) a person has made an election under paragraph (4)(a) and an instalment has not been paid by the due date, or

(c) a person has made an election under paragraph (6)(a) and an instalment is not paid by 21st April in the financial year following that in which it fell due,

then, unless within 3 months he makes a single payment of the balance outstanding, discounted for early payment, the amount of the instalments already paid is to be repaid to him.

C18 Deduction, payment and recovery of contributions

(1) The employer of a person in pensionable employment, other than a services education officer, is to deduct from his salary each month—

(a) the contributions payable under regulation C3(1) and any contributions payable under regulation C3(3),

(b) any additional contributions payable in accordance with Part I of Schedule 4 as a result of an election under regulation C4,

(c) any additional contributions payable by virtue of regulation C6 or C11, and

(d) any instalments payable under regulation C16(5),

and any amount not so deducted in any month is to be deducted from the person’s salary no later than 30th April next following the end of the financial year in which it ought to have been deducted.

(2) If and so far as deductions are not made under paragraph (1), any sum remaining due is to be paid by the person to the Secretary of State on receipt of a written demand specifying the sum.

(3) If the sum is not paid within 6 weeks after the date of the demand, interest is payable on it at 4% per annum, compounded with yearly rests, from the expiry of the 6 weeks to the date of payment.

(4) Without prejudice to any other means of recovery, any sum due to the Secretary of State under paragraph (2) or (3) may be recovered by deducting it from any benefits payable under Part E.

(5) Amounts due from a person under this Part which are not deductible under paragraph (1) are to be paid by him to the Secretary of State.

(6) If any amount to which paragraph (5) applies, except one due under regulation C9, C10, C16 or C17, is not paid within 6 months after the end of the period to which it relates, but remains payable, interest is payable on it at 4% per annum, compounded with yearly rests, from the expiry of the 6 months to the date of payment.

D1 Reckonable service generally

(1) Subject to regulation D2, a person is entitled to count as reckonable service—

(a) subject to paragraph (2), any period spent by him in pensionable employment,

(b) any period counting as reckonable service by virtue of regulations D3 (past period for which additional contributions have been paid), D4 (current period for which additional contributions have been paid) or F4(8) (acceptance of transfer value),

(c) any period which does not count as reckonable service by virtue of sub-paragraph (a) or (b) but which immediately before 1st November 1988 counted as reckonable service under regulation 4(1) of the 1976 Regulations,

(d) any period which immediately before 1st November 1988, under regulations 7 and 72(1)(a) of the 1976 Regulations (war service), was capable of counting as reckonable service for the purpose of calculating benefits under Part III of those Regulations,

(e) any period counting as reckonable service by virtue of regulation D5 of the 1988 Regulations (which continues to have effect for certain purposes by virtue of paragraph 12 of Schedule 15), and

(f) any period of specified country service.

(2) Where during a financial year a person has spent one or more periods in part-time pensionable employment each such period counts as—

of reckonable service, where—

A is the person’s contributable salary for the period, and

B is what his contributable salary for the whole of the financial year would have been if the employment had been full-time and had continued throughout the year.

(3) For the purposes of paragraph (2)—

(a) a period of part-time employment ends, and another such period begins, when any change occurs in the rate of the person’s contributable salary,

(b) no account is to be taken of any reduction in contributable salary during a period of sick leave or maternity leave,

(c) if a half or any greater fraction of a day results it is to be taken as one day, and any smaller fraction resulting is to be left out, and

(d) if the calculation would result in more than 365 days counting as reckonable service in respect of the financial year, the excess does not so count.

(4) In calculating the length of reckonable service—

(a) no account shall be taken of a leap year day (29th February) except as provided in sub-paragraph (b) below; but

(b) where total reckonable service which includes part of a year ends in a leap year on or after the leap year day that day shall be included in the number of days of reckonable service.

D2 Exclusion from reckonable service

The following do not count as reckonable service—

(a) any contributions refund period, and

(b) any period in respect of which a transfer value has been paid under regulation F1 or a cash equivalent has been paid.

D3 Past period for which additional contributions have been paid

(1) A person—

(a) who has paid additional contributions for a past period in accordance with Part II of Schedule 4, or

(b) in respect of whom payment of additional contributions for a past period in accordance with Part II of Schedule 4 has been made

is entitled to count the past period as reckonable service.

(2) A person who—

(a) has paid any additional contributions for a past period in accordance with Part I of Schedule 4, or

(b) has continued to pay additional contributions for a past period in accordance with Schedule 5,

is entitled to count as reckonable service a period calculated in accordance with Schedule 7.

D4 Current period for which additional contributions have been paid

(1) A person who has paid additional contributions for a current period in accordance with regulation C9 is entitled—

(a) if he was in full-time pensionable employment immediately before the start of the period, to count as reckonable service the period in respect of which they were paid, or

(b) if he was then in part-time pensionable employment, to count as reckonable service the proportion of the period that would have counted under regulation D1 if he had continued in that employment.

(2) A person who has paid additional contributions for a current period in accordance with regulation C10 is entitled to count as reckonable service the period specified in regulation C10(2).

E1 Overriding provision as to guaranteed minimum pensions

(1) This regulation applies where a person’s pensionable employment is contracted-out employment.

(2) Where this regulation applies it overrides anything in these Regulations that is inconsistent with it, except regulations E14 (abatement on re-employment) and E18 (deferment, etc. of benefits).

(3) Where this regulation applies and the person, in relation to employment up to 6th April 1997, has a guaranteed minimum in relation to benefits under these Regulations—

(a) unless on the cessation of the pensionable employment he is entitled to a retirement pension at a higher rate, he is from the date on which he attains state pensionable age entitled to a pension at a weekly rate equal to his guaranteed minimum,

(b) if he attains state pensionable age while in pensionable employment, continues in the same employment for a further period of 5 years and does not then cease to hold it, he is (unless he consents to a postponement of the entitlement) entitled from the end of that period to so much of his retirement pension as equals his guaranteed minimum,

(c) in the case of a man who dies at any time and leaves a widow, unless she is entitled to a widow’s pension at a higher rate she is, during any such period as is mentioned in section 17(5) of the 1993 Act, entitled to a pension at a weekly rate equal to half his guaranteed minimum, and

(d) in the case of a woman who dies at any time leaving a widower who is not entitled to a widower’s pension at a higher rate, in circumstances prescribed under section 17(6) of the 1993 Act, the widower is entitled to a pension payable for the period so prescribed.

(4) The weekly rate of a widower’s pension payable under paragraph (3)(d) is half of that part of the deceased’s guaranteed minimum which is attributable to earnings factors for the period beginning with the tax year 1988-89 and ending with the tax year 1996-7.

(5) In paragraph (4) “earnings factors” means the earnings factors referred to in section 14(2) of the 1993 Act.

E2 Nature of retirement benefits

Retirement benefits consist of—

(a) a retirement pension, and

(b) a retirement lump sum,

calculated in accordance with this Part.

E3 Qualification for retirement benefits

(1) A person is qualified for retirement benefits if—

(a) immediately before 6th April 1988 he would, but for his age, have been entitled under regulation 53 of the 1976 Regulations to payment of an annual allowance and an additional allowance by way of lump sum payment.

(b) immediately before 3rd February 1998 regulation E3(5) of the 1988 Regulations applied to him and he was qualified for retirement benefits under regulation E3 of those Regulations, or

(c) an appropriate qualifying period has been completed.

(2) An appropriate qualifying period—

(a) comprises every period of a kind described in Schedule 8 together with any period referred to in paragraph (4)(b), where that sub-paragraph applies, but excluding any contributions refund period, and

(b) may be discontinuous.

(3) If the person—

(a) was in pensionable employment, or paying contributions for a current period under regulation 30 of the 1976 Regulations on 6th April 1988, or

(b) entered pensionable employment after 6th April 1988 without having been in such employment before that date,

any qualifying period of 2 years is an appropriate one.

(4) If paragraph (3) does not apply, but the person was in pensionable employment before 6th April 1988 and subsequently entered pensionable employment again after that date, any qualifying period of—

(a) two years beginning on or after 6th April 1988; or

(b) such period beginning on or after 6th April 1988 as will, when taken with every period of a kind described in Schedule 9 to the 1988 Regulations before 6th April 1988, amount to 5 years

whichever is the shorter, is an appropriate one.

(5) For the purposes of paragraph (4) any period of the kind described in paragraph 4 of Schedule 8 (transfer value accepted) is to be treated as having begun after 5th April 1988.

(6) Notwithstanding that an appropriate qualifying period has not been completed, a person is qualified for retirement benefits—

(a) subject to paragraph (7), if he has a guaranteed minimum in relation to benefits under these Regulations, or

(b) if a transfer value was paid in respect of him by the Secretary of State to the superannuation scheme of the Commission of the European Communities and one has since been received by the Secretary of State from that scheme.

(7) If a contributions equivalent premium is paid by the Secretary of State, paragraph (6)(a) is to be treated as not having applied.

E4 Entitlement to payment of retirement benefits

(1) Subject to regulation E33(2) (application for payment), a person qualified for retirement benefits becomes entitled to payment of them in any of the Cases described in this regulation.

(2) In Case A the person—

(a) has attained the age of 60,

(b) has ceased to be in pensionable employment, and

(c) is not within Case B or D.

(3) In Case B the person—

(a) has attained the age of 60,

(b) has ceased after 31st March 1972 and after attaining that age to be in pensionable employment, but would have ceased to be in such employment before attaining that age had not the employment continued beyond the attainment of that age due to a period of paid sick leave, and

(c) has become incapacitated before attaining that age.

(4) In Case C the person—

(a) has not attained the age of 60,

(b) has ceased after 31st March 1972 and before attaining the age of 60 to be in pensionable employment,

(c) is incapacitated and became so before attaining the age of 60, and

(d) is not within Case D,

and, in cases where the pensionable employment ceased on or after 1st April 1997 the Secretary of State has notified the person in writing that he has not exercised, or is not considering the exercise of, his powers under regulation 10(2) or (10) of the Education (Teachers) Regulations 1993 to direct on grounds of that person’s misconduct that he be not appointed to or employed in relevant employment as defined in regulation 7 of those Regulations.

(5) In Case D the person—

(a) has attained the age of 50,

(b) has ceased after attaining that age but before attaining the age of 60 to be in pensionable employment or excluded employment,

(c) is not within Case C, and

(d) has not received and is not to receive compensation under Part III of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997 (discretionary compensation for termination), and his employer has notified the Secretary of State in writing—

(i) that his employment was terminated by reason of his redundancy or in the interests of the efficient discharge of the employer’s functions, and

(ii) that the employer has agreed that he should become entitled to retirement benefits under this Case.

(6) If regulation 4(8) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997 (employer to notify for purposes of those Regulations if requested by governing body) applies, the employer must notify the Secretary of State as mentioned in paragraph (5) above.

(7) In Cases A and B the entitlement takes effect as soon as the person falls within the Case.

(8) In Case C the entitlement takes effect—

(a) where, immediately before the person became incapacitated he was in excluded employment, on the day after the last day of his excluded employment; and

(b) in any other case, as soon as the person falls within the Case or as soon as the person would have fallen within the Case had there not been a requirement that the Secretary of State notify that person that he has not exercised, or is not considering the exercise of, his powers of direction under regulation 10(2) or (10) of the Education (Teachers) Regulations 1993,

or (in all cases), if later, 6 months before the date of the last of any medical reports considered by the Secretary of State in determining under regulation H9 that the person had become incapacitated.

(9) In Case D the entitlement takes effect as from the day after the end of the employment.

(10) In no case shall a person be regarded as having ceased to be in pensionable employment until at least one day has passed without the person being in pensionable employment.

E5 Amount of retirement pension

(1) Subject to paragraphs (2) to (6) and regulations E7 to E10, the annual rate of a person’s retirement pension is 1/80th of his average salary multiplied by his effective reckonable service.

(2) If—

(a) the person is entitled to count a period as reckonable service by virtue of regulation D3 (past period for which additional contributions have been paid), and

(b) by reason of regulation E32(3) part of that period does not count in calculating his retirement lump sum,

the annual rate calculated in accordance with paragraph (1) is, in respect of each year comprised in that part, increased by 1/350th of his average salary.

(3) Subject to paragraphs (4) to (6), where a person who has become entitled to payment of retirement benefits by virtue of regulation E4(5) has ceased to be in pensionable employment or excluded employment on or after 1st September 1997, the annual rate of the person’s retirement pension shall be the annual rate of such pension calculated in accordance with paragraphs (1) and (2) and, where appropriate, regulations E7 or E9 but disregarding the effect of regulation E10, multiplied by the appropriate factor.

(4) Paragraph (3) does not apply where notice to terminate the person’s employment was given or his resignation tendered on or before 22nd October 1996.

(5) If—

(a) the person has a guaranteed minimum in relation to employment up to 6th April 1997, and

(b) where—

A is the annual equivalent of his guaranteed minimum pension together with that of any equivalent pension benefits, and

B is the annual rate calculated in accordance with paragraphs (1) and (2) and, where applicable, paragraph (3),

the annual rate of his retirement pension is A.

(6) If a contributions equivalent premium has been paid in respect of the person and has not been refunded (and his entitlement to a guaranteed minimum pension is therefore extinguished) the annual rate of his retirement pension is reduced by the annual equivalent of the guaranteed minimum pension to which he would otherwise have been entitled.

E6 Amount of retirement lump sum

(1) Subject to paragraphs (2) and (3) and regulations E7 and E8, the amount of a person’s retirement lump sum is

where—

A is 3/80th of the persons average salary,

B is his effective reckonable service (except any falling within C), and

C is any period which he is entitled to count as reckonable service by virtue of regulation D3 (past period for which additional contributions have been paid).

(2) If the person’s effective reckonable service is restricted by regulation E32(2) the part of his retirement lump sum that is attributable to service before he attained the age of 60 is not to exceed his average salary multiplied by 1½.

(3) Subject to paragraph (4), where a person who has become entitled to the payment of retirement benefits by virtue of regulation E4(5) has ceased to be in pensionable employment or excluded employment on or after 1st September 1997, the amount of the person’s retirement lump sum shall be the amount calculated in accordance with paragraphs (1) and (2) multiplied by the appropriate factor.

(4) Paragraph (3) shall not apply where notice to terminate the person’s employment was given or his resignation tendered on or before 22nd October 1996.

E7 Limitation of retirement benefits in certain cases

(1) Paragraphs (2) to (5) apply to a person who has made an election under regulation C1(6) of the 1988 Regulations or regulation C2(1) (reduced salary treated as having continued at previous rate) and whose average salary falls to be calculated by reference to the notional rate or, as the case may be, the rate specified in regulation C2(4).

(2) The annual rate of the person’s retirement pension is not to exceed the fraction of the appropriate sum ascertained, by reference to the relevant age, from Table 1 below.

(3) Where the person has been in pensionable employment for less than 20 years, his retirement lump sum is not to exceed 3/80ths of the appropriate sum multiplied by the total of his reckonable service and the period ascertained, by reference to the number of complete years he has been in pensionable employment, from Table 2 below.

(4) Where the person has been in pensionable employment for 20 years or more his retirement lump sum is not to exceed the appropriate sum multiplied by 1½.

(5) The appropriate sum is the greater of—

(a) the person’s contributable salary for the best one of his last 5 years in pensionable employment, and

(b) 1/3rd of his aggregate contributable salary for his best 3 consecutive years in pensionable employment within the 10 years ending with its cessation,

and, for the purposes of paragraph (2), the relevant age is his age when he first entered pensionable employment, unless he was not continuously in pensionable employment in which case it is the figure obtained by subtracting the number of years in pensionable employment from 60.

(6) In this regulation references to “retirement pension” and “retirement lump sum” are references to such pension and lump sum before any actuarial reduction required by regulation E5(3) or E6(3).

E8 Enhancement of retirement benefits in case of incapacity

(1) This regulation applies to a person who has become entitled to payment of retirement benefits by virtue of regulation E4(3) or (4) by reason of his having become incapacitated before ceasing to be in pensionable employment, but only if—

(a) he had completed periods of the kinds described in Schedule 8 totalling at least 5 years, excluding any contributions refund period, and

(b) the application for payment required by regulation E33 is made within 6 months after the end of his pensionable employment.

(2) Subject to regulation E32(2) (limitation of effective reckonable service to 45 years, etc.), for the purpose of calculating the person’s retirement benefits the effective reckonable service of a person to whom this regulation applies is to be treated as having been increased by the appropriate period.

(3) If the person’s relevant service amounts to less than 10 years, the appropriate period is the shorter of—

(a) the length of his relevant service, and

(b) the period beginning when his pensionable employment ended and ending immediately before his 65th birthday.

(4) If the person’s relevant service amounts to 10 years or more, the appropriate period is the longer of period A and period B.

(5) Period A is the shortest of—

(a) the period by which the person’s relevant service falls short of 40 years,

(b) the period beginning when the person’s pensionable employment ended and ending immediately before his 60th birthday, and

(c) 6 years and 243 days.

(6) Period B is so much of the period beginning when the person’s pensionable employment ended and ending immediately before his 65th birthday as would not cause his effective reckonable service to be increased to more than 20 years.

(7) A person’s relevant service is so much of his effective reckonable service as does not consist of periods that count—

(a) by virtue of regulation D3 (past period for which additional contributions have been paid), or

(b) by virtue of the application to him of regulation 7 of the 1976 Regulations (war service).

(8) For the purposes of this regulation a person is to be treated as having been in pensionable employment during any period for which he was paying additional contributions under regulation C9 or C10.

E9 Avoidance of duplicate pensions

(1) Subject to paragraph (2), this regulation applies where a person’s effective reckonable service includes a period that also counts towards another pension payable directly or indirectly out of moneys provided by Parliament or by the rates or council tax levied by local authorities (“the double period”).

(2) This regulation does not apply where the other pension is subject to reduction under Schedule D6 to the Local Government Pension Scheme Regulations 1995 or, when in force, regulation 142 of the Local Government Pension Scheme Regulations 1997 or where the other pension is payable under regulation 7 of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997 .

(3) Subject to paragraphs (4) and (5), where this regulation applies the person’s retirement benefits are reduced by so much as is necessary to secure that

where—

A is the actuarial value of the retirement benefits in respect of the double period, and

B is the actuarial value of the other pension in respect of that period.

(4) A is not to be reduced to less than the actuarial value of

where—

C is the amount of the contributions paid by the person in respect of the double period, including any paid under regulation C9 or C10, and

D is interest on those contributions at 3% per annum, compounded with yearly rests, from the first day of the financial year following that in which they were paid to the date on which the person became entitled to payment of the retirement pension.

(5) A retirement pension is not to be reduced so that so much of it as is attributable to the double period falls below the rate of any equivalent pension benefits attributable to that period.

(6) For the purposes of this regulation—

(a) the other pension includes any sum payable, whether as a continuing allowance or as a lump sum, by way of pension, superannuation allowance, compensation for loss or abolition of office or otherwise in respect of retirement; and

(b) references to “retirement benefits” are references to such benefits before any actuarial reduction required by regulation E5(3) or E6(3).

E10 National Insurance modification of pensions

Part I of Schedule 10 has effect for modifying the retirement pensions of persons who were in pensionable employment before 1st April 1980 including retirement pensions that have been actuarially reduced under regulation E5(3).

E11 Allocation of part of retirement pension

(1) A person who has become qualified for retirement benefits may, unless he becomes entitled to payment of them by virtue of regulation E4(4) (incapacity), allocate part of his retirement pension to the provision of an alternative benefit.

(2) The alternative benefit may be either—

(a) an annuity for life, commencing on the death of the person making the allocation (“the allocator”), for a surviving spouse or dependant, or

(b) an annuity payable to the allocator while the allocator and allocator’s spouse are both alive, and if the spouse is the survivor a subsequent annuity for life, at twice the rate of the first annuity, for the spouse.

(3) The rates of the annuities mentioned in paragraph (2) shall be determined in accordance with tables prepared by the Government Actuary.

(4) An allocation must be made by delivering a declaration to the Secretary of State, and in paragraph (2) “spouse” refers to status at the time of its delivery.

(5) Further provisions as to an allocation under this regulation are contained in Schedule 11.

E12 Duration of retirement pension

Subject to regulations E13 to E15 and E18, a retirement pension continues to be payable, at the rate at which it initially became payable in accordance with regulation E5, until the death of the person entitled to it.

E13 Pensioner ceasing to be incapacitated

(1) This regulation applies where a person who became entitled to payment of a teacher’s pension by virtue of regulation E4(4) ceases to be incapacitated.

(2) On the person ceasing to be incapacitated the pension ceases to be payable, but any equivalent pension benefits continue to be payable.

(3) Subject to paragraph (4) and to regulation E33(2) (application for payment), the pension becomes payable again—

(a) from the person’s 60th birthday, or

(b) if earlier, from the start of any renewed incapacity.

(4) Paragraph (3) does not apply if the person has been in pensionable employment at any time after he first became entitled to payment of the pension.

(5) If the pension becomes payable again under paragraph (3)(a) it is to be treated for the purposes of regulation E14 as one to the payment of which the person has become entitled by virtue of regulation E4(2).

E14 Abatement of retirement pension during further employment

(1) This regulation applies while a person who has become entitled to payment of a teacher’s pension is employed—

(a) in pensionable employment, comparable British service, or employment which would have been pensionable employment but for—

(i) his having made an election under regulation B5 (election for employment not to be pensionable),

(ii) his having attained the age of 70, or

(iii) regulation B4(2)(a) (employment not pensionable).

(b) in part-time employment in a capacity described in paragraphs 1 to 9 of Schedule 2.

(2) If the person is concurrently both in employment falling within paragraph (1)(a) and in employment falling within paragraph (1)(b), this regulation applies only in respect of the former.

(3) Where this regulation applies, the annual rate of the pension is reduced—

(a) If A equals or exceeds (C+D−E), to zero, and

(b) in any other case, and subject to paragraph (4), by the amount (if any) which is necessary to secure that (A+B) does not exceed

where—

A is the initial annual rate of the person’s salary in the employment,

B is the reduced annual rate of the pension as increased under the Pensions (Increase) Act 1971 disregarding any actuarial reduction required by regulation E5(3),

C is, or where his previous pensionable employment was part-time is the full-time equivalent of, the highest annual rate of contributable salary that was payable to him during the 3 years ending immediately before he became entitled to payment of the pension, or, if applicable, the highest annual rate of contributable salary that was payable to him during the 3 years ending immediately before he ceased to be employed in any pensionable employment entered into by him after he became entitled to payment of the pension, whichever is the greater.

D is the amount (if any) by which, immediately before the first day of the employment, C would have been increased if it had been the annual rate of an official pension, within the meaning of section 5(1) of the Pensions (Increase) Act 1971 beginning, and first qualifying for increases under that Act, on the same date as the pension, and

E is any part of the pension allocated under regulation E11.

(4) Where regulation E5(3) applies the amount (if any) by which the annual rate of the pension is to be reduced under paragraph (3)(b) shall be the amount (if any) referred to in that sub-paragraph multiplied by the appropriate factor.

E15 Retirement benefits on cessation of further employment

(1) This regulation applies to a person who—

(a) became entitled to payment of a teacher’s pension (“the first pension”),

(b) was subsequently in pensionable employment (“the further employment”), and

(c) has ceased to be in the further employment.

(2) Subject to paragraph (3), if the first pension was not enhanced under regulation E8 (enhancement of retirement benefits in case of incapacity), the person—

(a) ceases to be entitled to payment of the first pension, and

(b) becomes entitled to payment of retirement benefits (“combined benefits”) calculated, subject to paragraph (8), by reference to the total of his reckonable service in the further employment and the reckonable service taken into account in calculating the first pension.

(3) If the average salary by reference to which combined benefits would fall to be calculated is less than that by reference to which the first pension was calculated, the person—

(a) remains entitled to the first pension, and

(b) subject to paragraph (7), becomes entitled to payment of retirement benefits calculated by reference to his reckonable service in the further employment.

(4) Subject to paragraph (7), if the first pension was enhanced under regulation E8 he becomes entitled to payment of the first pension and of additional retirement benefits in respect of the further employment.

(5) The additional retirement benefits are to be calculated—

(a) in respect of pensionable employment before attaining the age of 60, as if regulation E8 had applied and the further employment had begun when he became entitled to payment of the first pension, and

(b) in respect of other pensionable employment, in accordance with regulations E5 and E6,

but the additional retirement lump sum is subject to reduction under paragraph (8).

(6) If in the application of regulation E8 to the calculation of the first pension the appropriate period was Period B, paragraph (5)(a) applies with the substitution for “60” of “65”.

(7) If the person ceased to be in the further employment before attaining the age of 60 and neither regulation E4(4) (incapacity) nor regulation E4(5) (redundancy, etc.) applied, he does not become entitled to payment of retirement benefits under paragraph (3)(b) or (4) until he attains that age.

(8) A retirement lump sum payable under paragraph (2)(b), and an additional retirement lump sum payable under paragraph (4), is reduced by the amount of the retirement lump sum to which the person became entitled when he became entitled to payment of the first pension, of any lump sum to which he had previously become entitled under this regulation, and of any short-service incapacity grant paid to him under regulation E17.

(9) Where a person ceases to be in further employment on or after 1st September 1997 and becomes entitled to retirement benefits by virtue of regulation E4(5)—

(a) regulation E5(3) shall apply to that person’s retirement pension under paragraph (2)(b) or (3)(b) or to his additional retirement pension under paragraph (4); and

(b) regulation E6(3) shall also apply to that person’s retirement lump sum under paragraph (2)(b) or (3)(b) or to his additional retirement lump sum under paragraph (4).

E16 Short-service annuity

(1) A person who—

(a) has not been in pensionable employment at any time after 5th April 1980, and

(b) is not qualified for retirement benefits, and

(c) would, but for regulation 46(2) of the 1976 Regulations or regulation C12(2) (salary exceeding £5,000), have been entitled to be repaid the balance of his contributions,

is entitled to be paid, from his 60th birthday, an annuity for life.

(2) The rate of the annuity is the actuarial equivalent of the balance of his contributions calculated in accordance with regulation C13 as at his 60th birthday.

E17 Short-service incapacity grant

(1) A person who—

(a) has been in pensionable employment for at least one year, and

(b) has become incapacitated, and

(c) had not attained the age of 70 when he became incapacitated, and

(d) is not entitled to payment of retirement benefits the aggregate value of which exceeds the relevant amount,

is entitled, if he applies for payment within 6 months after the end of his pensionable employment, to an incapacity grant.

(2) The aggregate value of retirement benefits is the total of the retirement lump sum and the actuarial equivalent of the retirement pension.

(3) The relevant amount is

where,

A is the person’s average salary, and

B is the length of his reckonable service.

(4) The amount of the incapacity grant is the difference between the relevant amount and the aggregate value of any retirement benefits to which the person is entitled.

(5) The incapacity grant is not to be paid before the end of the person’s pensionable employment.

E18 Deferment etc. of benefits

(1) This regulation applies where a person is convicted of—

(a) an offence of treason,

(b) one offence or more under the Official Secrets Acts 1911 to 1989 for which he has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, or

(c) an offence in connection with pensionable employment or excluded employment which is certified by the Secretary of State either to have been gravely injurious to the State or to be liable to lead to serious loss of confidence in the public service,

and any benefit under regulations E1 to E17 becomes payable to him after the offence was committed.

(2) Subject to paragraph (3), the Secretary of State may—

(a) defer or, as the case may be, suspend payment of the benefit for so long, or

(b) reduce its amount or rate by so much,

as he may determine,

(3) If—

(a) the person has a guaranteed minimum in relation to benefits under these Regulations, and

(b) the offence does not fall within paragraph (1)(a) or (b),

a determination under paragraph (2) may not deprive him of his guaranteed minimum pension after he attains state pensionable age.

E19 Commutation: exceptional circumstances of ill-health

(1) Where, at the time when a person first becomes entitled to a retirement pension by virtue of regulation E4(3) or (4), there are exceptional circumstances of serious ill health affecting the person the Secretary of State may discharge the liability to pay that pension in respect of so much of it as exceeds the person’s guaranteed minimum by payment of a lump sum calculated in accordance with paragraph (2).

(2) The lump sum is an amount equal to five times the amount by which the annual rate of the retirement pension which would otherwise be payable to the person exceeds the amount of his guaranteed minimum.

E20 Death grant

(1) Subject to paragraph (6), if at the time of his death a person—

(a) was in pensionable employment, or

(b) was paying additional contributions under regulation C9 or C10, or

(c) had, not more than 12 months earlier, ceased to be in pensionable employment while incapacitated,

a death grant may be paid.

(2) The amount of a death grant under paragraph (1) is the greater of—

(a) the amount which, if on the date of the person’s death he had ceased to be employed on becoming incapacitated, would have become payable by way of retirement lump sum or short-service incapacity grant, or both, and

(b)

(i) in a case of a death occurring before 1st April 1998, his average salary, or

(ii) in the case of a death occurring on or after 1st April 1998, twice his average salary,

less, in either case, the amount of any retirement lump sum or short-service incapacity grant previously paid to him.

(3) Subject to paragraph (6), if a person who has ceased after 31st March 1972 to be in pensionable employment dies without having become entitled to payment of retirement benefits and—

(a) the qualifying condition is satisfied, and

(b) no death grant could be paid under paragraph (1),

a death grant may be paid under this paragraph.

(4) The qualifying condition—

(a) if the person ceased to be in pensionable employment before 1st November 1988, is that he was entitled to count at least 2 years' reckonable service, and

(b) in any other case, is that he was so entitled and was qualified for retirement benefits,

but, where sub-paragraph (a) applies, it is to be assumed for the purpose of calculating the death grant that he was qualified for retirement benefits.

(5) The amount of a death grant under paragraph (3) is the amount that would have become payable by way of retirement lump sum if the person had become entitled under regulation E4(2) to payment of retirement benefits, less the amount of any retirement lump sum or short-service incapacity grant previously paid to him.

(6) If a person who has at any time been in pensionable employment dies and—

(a) no death grant could be paid under paragraph (1) or (3), or

(b) the amount of such a death grant would be smaller and no pension becomes payable under regulation E26 to a surviving spouse or a nominated beneficiary,

a death grant equal to the balance of his contributions, calculated in accordance with regulation C13 as at the date of his death, may be paid.

(7) Where any death grant is paid under this regulation, it is to be paid to the individual nominated by the deceased to receive the grant or, in the absence of such a nomination—

(a) if the deceased is survived by one widow or by a widower, to the widow or widower,

(b) if there are two or more widows, to the widows in equal shares, or

(c) if there is no widow or widower, to the personal representatives.

(8) Any nomination for the purposes of paragraph (7) shall be made by giving written notice to the Secretary of State.